Cubic zirconia yields good margins and is appearing in better metals
and designer-look jewelry

There's little, if any, cubic zirconia jewelry in the showcases of independent
retail jewelers in the U.S., though there's certainly a market for it. Television
shopping networks and mass merchants sell plenty.

This polarization has become pronounced in the past five or six years
as mass merchants expand their hold on the CZ market, says Casey Bolt of
Fabulous Z, Dallas, TX. "The independent jeweler is out of the picture,"
adds Jack Malinowski of Swarogem North America, Austin, TX. "There's
no way he can compete with mass merchandisers."

Some retailers find a way, though, according to several manufacturers.
Nancy Nagamatsu, North American sales director for Germany's Friedrich Zettl,
says Zettl's high-styled line affords jewelers an opportunity "to take
on limited CZ collections and not compete with their diamond lines."

The key to selling effectively is to position CZ as a complement  not
a competitor  to diamond lines. CZ may offer an opportunity for independents
to bring in new customers and make good margins  as much as triple
keystone  say many manufacturers.

A major target for CZ jewelry is the working woman who wants to wear
good-looking jewelry but may not have the emotional or romantic attachment
to diamonds or the budget to afford them.

There's a safety angle too. "Professional women who travel feel
more secure with CZ," says Nagamatsu. If a customer already owns a
diamond solitaire necklace, for example, encourage her to buy a CZ lookalike
for travel.

Design Directions
Independents who haven't seen CZ jewelry in a while may be surprised by
today's designs. First, stones often are 1 to 2 carats, much less ostentatious
than the 4- and 5-ct. stones that marked early CZ jewelry.

Second, metals are better, with 14k gold starting to displace 10k; even
higher karatages can be found (Kishek International of Costa Mesa, CA, offers
some 21k CZ jewelry). However, sterling silver remains the most popular
metal for CZ.

And third, more fashion-oriented designs are available. "CZ business
is strongest when it comes out with the designer look," says Brian
Chrisfield of Crislu, El Segundo, CA.

Fabulous Z is introducing a line of 18k CZ jewelry at the Reed/JCK Show
in Las Vegas in June. Also making its debut at the show will be a line of
new stone shapes for the millennium from Harten Jewelry, described by owner
Offer Harten as futuristic, shapes that didn't exist before. "We're
not planning these for the mass merchandisers," says Harten. "They're
for the independents and fine department stores."